Organizational capability, business innovation and firms’ performance among tourism enterprises: Basis for dynamic capability framework

International Journal of Research Studies in Management
CollabWritive Special Issue
2024 Volume 12 Issue 8

Available Online: 30 July 2024

Author/s:

Zheng, Na
Graduate School, Lyceum of the Philippines University – Batangas, Philippines

Abstract:

The study aimed to explore the interconnections among organizational capabilities, business innovation, and firms’ performance of large-scale tourism enterprises in China, to further construct a dynamic capability framework for tourism industries. This study gathered data from 420 senior executives from selected ten major tourism companies in five provinces of China. It used descriptive design and questionnaire survey to collect relevant data and information. The study found that tourism companies in China have an extremely important impact on their business innovation and corporate performance in terms of organizational capabilities. Enhancing organizational strength can promote business innovation, which is critical to enhancing overall firm performance. Respondents generally agreed that companies are performing well in a number of areas, including customer service delivery, operational efficiency improvement, and demonstration of leadership and governance capabilities. In the context of business innovation, respondents generally agreed that the tourism industries demonstrate a clear dynamic of innovation including product design, service quality, workflow planning, and marketing strategy. In addition, companies are performing well in terms of financial performance, marketing strategy and customer satisfaction. High significant relationships exists between organizational capability, business innovation and firm’s performance. Further, this study proposed a dynamic capability framework for tourism industries. The results of the study showed that only through continuously improving organizational capabilities and actively promoting business innovation, tourism enterprises can gain advantages in the stiff market competition and achieve sustainable development. The research not only enriches the relevant theoretical research, but also provides useful guidance for tourism industry’s practices.

Keywords: organizational capabilities, business innovation, firm performance, innovative business model framework, tourism enterprises

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DOI: https://doi.org/10.5861/ijrsm.2024.1215

Cite this article:
Zheng, N. (2024). Organizational capability, business innovation and firms’ performance among tourism enterprises: Basis for dynamic capability framework. International Journal of Research Studies in Management, 12(8), 189-204. https://doi.org/10.5861/ijrsm.2024.1215